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Robust optimization Model to Minimize production Stoppage of a Five level Supply chain Network of a Car Manufacturer

Author Affiliations

  • 1Department of Industrial Engineering, Science and Research Branch, Islamic Azad University, Tehran, IRAN
  • 2 Department of Industrial Engineering Sharif University of Technology, Tehran, IRAN

Res. J. Recent Sci., Volume 4, Issue (4), Pages 113-119, April,2 (2015)

Abstract

The purpose of this study is to minimize the cost of production stoppages as well as the penalty cost caused because of delays in the delivery of the products. We consider a five-level supply chain network and customize it for a car manufacturer. To improve this system, we develop an approach which consists of two stages. In the first stage, a long-term model is developed to minimize the total cost of the supply chain. Key decisions in this model include determination of the optimal number as well as the location of cross-docks and distribution centers in the system, determination of the transportation type and amount of shipments moved between facilities in the entire chain. In the second stage, we also develop a model to minimize the tardy deliveries of products which are caused by frequent production interruptions. To achieve this goal, by analyzing the historical data first the sources of production interruptions and their effect on stoppage are identified. Then, the corrective methods to reduce the effect of each source are introduced. Due to the uncertainty in the nature of the data, robust optimization is applied to develop the model. Furthermore, to solve the model with real data which makes the scale of the problem very large, a methahurestic algorithm is developed. This approach is implemented in a real case of a car manufacturer.

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